Exploring ASP Sourcing Decisions in Small Firms

Abstract

This chapter explores application service provision (ASP) in small- and medium-sized enterprises (SMEs). Five exploratory case studies among UK SMEs illustrate that SMEs are aware of the ASP concept and its potential. While the uptake of ASP is still low the idea of paying for information systems (IS) services on a monthly basis is gaining ground. A framework mapping the ASP sourcing decision process for SMEs is introduced, highlighting the issues and challenges that SMEs face when evaluating whether to source IS through the ASP renting model rather than building a solution in-house or buying it off the shelf.